NFFE 259 vs. HUD Housing and Urban Development FLSA Overtime Case

James L Fuchs

Practice Area:Arbitration

Outcome:Union victory on FLSA Exemption for employees

Description:HUD, after settling an FLSA Overtime case with two Unions that we represented, for $24 million, refused to apply that settlement to two other smaller Unions that also represents HUD Bargaining Unit employees. We are fighting HUD on several issues, including FLSA exemption (liability) and damages. In this case, in Memphis, TN, HUD refused to reclassify two employees as FLSA Nonexempt. We had hearings, briefings and Arbitrator Lawrence Oberdank ruled in favor of the Union. He found that HUD had to prove beyond a reasonable doubt that the GS-2210-12 and GS-301-13 employees were properly Exempt, which they failed to do. He ordered HUD to reclassify the employees as FLSA Non-exempt. We now have to evaluate their damages. As HUD has stated that it will never, ever settle another case with our firm over FLSA issues, it looks like we will be in this case for the long haul. There is a companion case in Detroit, MI which we are also fighting against HUD.